Delivering Saudi Arabia’s global logistics goals
12 July 2023
Saudi Arabia’s Vision 2030 has high aspirations for the logistics sector. Strategically located between the continents of Europe, Asia and Africa, the kingdom has set bold targets as it aims to become a global logistics hub handling 4.5 million tonnes of air cargo and 330 million air passengers a year by the end of the decade.
To deliver these goals, Riyadh recognised the need for a new generation of national champions to lead the sector’s development. One of those companies is Saudi Logistics Services (SAL), formed in December 2019.
“While it appears that we have only four years of experience, we were part of Saudi Arabian Airlines Corporation (SACC), carrying a history of more than 77 years, since 1945 when the Saudi airline was established,” says SAL’s managing director and CEO Faisal Albedah (pictured) in an interview with MEED.
“The shareholders decided to carve out the cargo handling from SACC and create SAL,” Albedah says, adding that the move was designed to “focus more on cargo handling, to grow it, increase efficiency and give best-in-class services to our clients”.
Multiple modes
SAL’s name underpins its ambition to be more than just an air cargo handler.
“SAL stands for sea, air and land. It’s about the connectivity between all the modes of shipment. Our vision is to be the logistic champion for a globally connected Saudi Arabia,” he says.
This, he explains, will be achieved by “building the right organisation, resources and capabilities, and also with partnerships across the value chain”.
SAL already has significant operations in the kingdom. “We operate in 18 airports across Saudi Arabia and have our own terminals everywhere.”
He underlines the company’s strategic role in aiding Vision 2030 by elaborating, “We increase our capacity and efficiency by utilising digitisation and automation. We allocated capital expenditure of SR1.5bn [$400m] to expand our capacity and support Vision 2030.”
We are working to localise logistics expertise within Saudi Arabia. We have 1,000 employees, 97.2 per cent of whom are Saudi nationals
Faisal Albedah, SAL
Solid growth
SAL is growing strongly. Its performance in the first quarter of 2023 shows expansion across various metrics.
Transit truck handling was the star performer, with a 161.3 per cent year-on-year increase in the number of trucks handled.
Dammam stood out with an impressive 358.2 per cent growth, underlining its prominence in transit operations. Riyadh experienced a 28 per cent year-on-year increase, while Jeddah showed a decrease of 13 per cent.
Passenger aircraft handling numbers grew by 18 per cent on a year-on-year basis, with Jeddah leading the demand with 39.1 per cent growth.
For cargo aircraft handling, SAL achieved a substantial 18.4 per cent year-on-year increase, led by Dammam with 64.4 per cent growth. However, the rise in cargo handling was not universal. Jeddah registered a 6.8 per cent drop in cargo plane handling.
When comparing the weight of the total volumes of shipments, SAL achieved a commendable 13.1 per cent year-on-year increase. Dammam, once again, emerged as the leader with 40.8 per cent year-on-year growth.
Jeddah also witnessed positive growth of 15.9 per cent, while Riyadh experienced an increase of 5.5 per cent. Medina showed a slight decrease of 1.5 per cent.
Going forward, a core aspect of SAL’s growth strategy involves investing in human capital.
“We have signed an agreement with the Saudi Logistic Academy, sending 250 of our staff to get an education in logistics solutions,” says Albedah.
Giving insights into SAL’s customer relations and handling capacity, Albedah shares that “we handle nearly 380 daily flights” and emphasises the company's approach to problem-solving.
“Clients do not just want services; they need solutions. We sit with our clients to understand their challenges and work out a long-term solution,” he said, noting that the Covid-19 pandemic underscored the need for resilient, long-term solutions.
Focusing on SAL’s efforts in localisation, Albedah proudly announces that, “We are working to localise logistics expertise within Saudi Arabia. We have 1,000 employees, 97.2 per cent of whom are Saudi nationals.”
Online retail
One sector that has been identified as a fast-growing opportunity for SAL is online retail.
“E-commerce in the region is expected to grow at a rate of 16 per cent between 2020 and 2030. SAL supports the sector with our cargo handling business, which has fully dedicated terminals to support all the courier companies. We also plan to invest in fulfilment services for e-commerce,” says Albedah.
Another initiative for the future is SAL’s plan to diversify into passenger handling. “We have obtained our licence for ground services for passengers from the General Authority of Civil Aviation,” he says.
In January, SAL signed a memorandum of understanding with ground-handling company Menzies Aviation to develop passenger handling services for low-cost carriers at Saudi Arabia’s airports.
Albedah says collaborating with a multinational player will “help us get into passenger handling. We want to play a role in achieving the country’s vision to reach 330 million passengers a year by 2030”.
Register for MEED's guest program now to access this article.
Exclusive from Meed
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Qatar seeks to establish new industrial area in Mesaieed16 July 2026
Qatar’s Ministry of Commerce & Industry and state enterprise QatarEnergy have signed an agreement to cooperate on evaluating and allocating hydrocarbon-derived resources to support the establishment of a new medium industries area in Mesaieed Industrial City.
Under the terms of reference signed between the parties, QatarEnergy will implement a governance mechanism for the allocation of hydrocarbon-derived feedstock to qualifying industrial investment opportunities for the proposed new medium industries area in Mesaieed Industrial City.
“The agreed terms of reference stipulate the evaluation and allocation of hydrocarbon-derived resources, natural gas, power and related natural resources to downstream derivative industrial investment opportunities,” QatarEnergy said in a statement.
“It will also ensure the optimal use of national resources and enhance the added value of the industrial sector by establishing a joint governance framework to evaluate and allocate resources required by qualified industrial investment opportunities,” it added.
QatarEnergy currently operates crude oil refining facilities, including natural gas liquids units, as well as petrochemical production complexes and other units in the hydrocarbon value chain, in Mesaieed Industrial City, situated around 45 kilometres south of Doha.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17688383/main.jpg -
Bahri signs deal for two offshore vessels with Dubai shipyard16 July 2026
Bahri Logistics, a division of Saudi Arabia’s national shipping company Bahri, has placed an order for the construction of two advanced offshore support vessels with Dubai-based Grandweld Shipyard.
Grandweld will custom-build the two vessels to meet Bahri’s operational requirements for offshore activities at Ras Tanura port in Saudi Arabia, one of the world’s busiest oil and gas bunkering and export hubs.
The vessels will be built at Grandweld’s shipyard in Dubai Maritime City and are expected to be delivered in August, following a 12-month building period.
The vessels will feature the latest navigation and safety technologies. They are designed to perform multiple offshore support functions, including vessel clearance, crew changes and emergency response, while adhering to international maritime standards.
The newbuild agreement with Grandweld aligns with Bahri’s broader strategy “to modernise its fleet, enhance technical capabilities, and adopt more energy-efficient and environmentally responsible designs”.
“Through continued investments in technology, infrastructure and fleet diversification, Bahri Logistics aims to deliver smarter, more sustainable logistics solutions that contribute to the Saudi Green Initiative and the kingdom’s long-term economic diversification goals,” the Saudi Stock Exchange-listed (Tadawul) company said in a statement.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17687877/main.jpg -
Egypt intensifies efforts to create petroleum stockpile16 July 2026
Egypt is intensifying its efforts to secure and maintain a sufficient strategic stockpile of petroleum products, according to a statement from the country’s cabinet and its Ministry of Petroleum & Mineral Resources.
The Egyptian government is closely monitoring regional developments and their potential repercussions on the energy sector, according to the statement.
Egyptian Prime Minister Mostafa Madbouly said that the government is implementing flexible plans and looking at alternative scenarios so that it can respond quickly to emergencies while ensuring the uninterrupted supply of fuel to citizens and key industrial sectors.
Egypt is intensifying its efforts to build up strategic stockpiles amid heightened uncertainty about future global oil and gas supplies.
Since the US and Israel attacked Iran on 28 February, there has been significant disruption to shipping through the Strait of Hormuz, which is a key transit route for oil and gas exports from the Middle East.
On top of this, the regional war has involved multiple direct attacks on refineries in the GCC, increasing uncertainty about the future availability of refined products.
Aside from Motafa Madbouly, the meeting was also attended by Hassan Abdullah, who is governor of the Central Bank, Minister of Finance Ahmed Koguk and Minister of Petroleum and Minerals Karim Badawi.
During the meeting, Badawi gave a presentation on the available quantities of different petroleum products and explained the details of the procedures currently being implemented to increase the strategic stock of petroleum products.
A review of the coordination framework and joint work between the Ministry of Finance and the Central Bank also took place during the meeting.
This was in order to ensure the management of financial tools needed to strengthen the country’s strategic inventory, according to the statement.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17685719/main.jpg -
Tunisia orders $86m of trainsets from Chinese supplier16 July 2026
Tunisian public transport operator Transtu has finalised an $86m agreement with China’s CRRC Nanjing Puzhen.
CRRC will supply 18 new electric trainsets for the capital’s northern suburban rail network, which links Tunis to La Goulette and La Marsa.
Each new trainset will be air-conditioned and capable of carrying up to 400 passengers, including 90 seated riders, with a top speed of 100 km/h. Once operational, the trains are expected to run at six-minute intervals during rush hour and every 12 minutes during off-peak hours.
The deal forms part of a broader fleet renewal effort by Transtu, which has struggled in recent years with operational setbacks that have taken a toll on the quality of public transport across Greater Tunis.
The acquisition is designed to boost capacity on the heavily used line as ridership continues to grow, while also enhancing safety standards and overall service quality.
Funding for the project comes jointly from the European Bank for Reconstruction & Development and the European Investment Bank.
Beyond the trainsets, the contract includes five years of maintenance coverage, a supply of spare parts and maintenance equipment, and an underfloor wheel lathe aimed at improving long-term fleet reliability.
This latest investment fits into Tunisia’s larger railway modernisation strategy, under which the government plans to invest $12bn by 2040 to expand and upgrade the country’s rail infrastructure.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17683957/main.jpg -
PIF developer tenders 365-metre Mecca residential tower16 July 2026
Rua Al-Haram Al-Makki has tendered the main construction package for the Ajyad residential tower, a 365-metre high-rise development in Mecca’s central area, close to the grand mosque.
The bid submission deadline is 30 September.
Rua Al-Haram Al-Makki Company was established in October 2017 and is a wholly owned subsidiary of Saudi Arabia’s Public Investment Fund.
The project team includes US-based Marriott International as residential operator, Hanmi Global Saudi as project management consultant, Saudi Diyar Consultants as construction supervision consultant, and PLP Architecture as lead design consultant and construction-stage design guardian.
The tower rises 84 floors with four basement levels. It comprises a total of 212 units, including 82 three-bedroom apartments, 85 four-bedroom units, 29 penthouses and 16 duplex villas.
The scheme has a gross floor area of 209,231 square metres (sq m) and a built-up area of 242,976 sq m.
The site is currently being cleared by a demolition contractor, with the existing mat foundation and retaining walls to be handed over to the main contractor, who will build the new superstructure on the retained raft.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17683664/main.jpg